The MLB Lockout Now Runs on Private Equity

Today's guest columnist is Chris Koras, partner and head of sports at Working Capital Partners.

In December 2022, I flew to the Dominican Republic to break a year-long contract stalemate. Our firm represented Rafael Devers . The Boston Red Sox had sent ownership and front-office executives to settle the negotiation directly with the player, hoping relationship leverage would carry the economics. It moved nothing.

We ended the negotiation in writing. Devers would play the season and enter free agency. Days later, facing the credible threat of losing a third consecutive star on the eve of ticket sales opening, Boston moved, agreeing to a record $331 million deal. It worked for one reason: Devers could afford the outcome he was threatening, and the Red Sox could not. Resolve is credible only when you can survive your own threat.